Economic Survey 2026: On Thursday, Finance Minister Nirmala Sitharaman shared insights about the country’s economic status in Parliament, just before the budget announcement. In this Economic Survey, she disclosed the growth rate of the Indian economy for the current financial year. While presenting the Economic Survey 2026 in the House, she emphasized that India continues to be the fastest-growing economy globally. The survey also included projections for retail inflation.
The Economic Survey indicates that, despite global market ups and downs and geopolitical issues, the Indian economy is projected to grow between 6.8 and 7.2 percent this fiscal year. The real GDP growth for the country could surpass 7 percent in the 2026-27 fiscal year. According to the Economic Survey, the GDP growth for this fiscal year is anticipated to be around 7.4 percent. The Finance Minister mentioned in Parliament that this marks the fourth consecutive fiscal year where the Indian economy is expanding at the fastest rate worldwide.
Electronics Sector Shows Growth
The Economic Survey highlights that India’s electronics sector has advanced from being the 7th largest export category in FY 2022 to the third largest and the fastest-growing export category by FY 2025. Exports hit $22.2 billion in the first half of FY 2026, positioning the sector to potentially become India’s second-largest export. The remarkable growth of the electronics sector is fueled by a boom in domestic production and exports, particularly in mobile manufacturing.
The production value has skyrocketed from Rs 18,000 crore in FY 2015 to around Rs 5.45 lakh crore in FY 2025, marking an almost 30-fold increase. India has transformed into the world’s second-largest mobile phone manufacturer, evolving from being a net importer with just two mobile phone factories in 2014 to now having over 300 factories.
What are the projections for inflation?
According to the Economic Survey, inflation is likely to remain under control in the coming year. The survey states that supply-side conditions remain favorable, and the impact of GST rate revisions is gradually being seen. India’s inflation rate averaged 1.3 percent in December, remaining below the RBI’s 2-6 percent target for the fourth consecutive month. Inflation will likely remain soft going forward, making it easier for the Reserve Bank to formulate its policies.
Decreasing Gold Demand
According to the Economic Survey, India’s gold demand could drop in 2026, following an 11% decline last year. The World Gold Council (WGC) has pointed out that higher gold prices have impacted jewellery sales, leading to an overall decrease in demand, even though investment purchases have gone up. Sachin Jain, the head of WGC in India, mentions that this year’s gold demand might range from 600 to 700 metric tonnes, compared to last year’s 710.9 tonnes, which was the lowest in five years.